Ethereum, the world’s second-largest cryptocurrency by market value, is unique in many ways. One of the most notable is that it doesn’t have a block reward.
The block reward is the incentive given to miners who successfully add a new block of transactions to the blockchain. In Bitcoin, for example, the block reward is currently 12.
5 BTC. Ethereum, on the other hand, has no block reward.
So, how does Ethereum incentivize miners to continue mining new blocks? The answer is transaction fees.
Whenever a transaction is made on the Ethereum network, the sender must pay a small fee to the miner who includes their transaction in a new block. These fees are collected by the miner and are often referred to as “gas fees”.
The gas fee is calculated based on two factors: the amount of Ether being sent and the complexity of the transaction. The more Ether that is being sent, or the more complex the transaction, the higher the gas fee will be.
While there is no block reward in Ethereum, miners still have an incentive to keep mining new blocks because they collect gas fees from every transaction included in each new block they add to the blockchain.
In conclusion, Ethereum does not have a block reward like Bitcoin does. Instead, it relies on transaction fees to incentivize miners to keep mining new blocks.